SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

Notifications
    News For You

    Samsung has lost the race for acquiring ASML’s EUV equipment to TSMC

    General
    By 

    Last updated: May 10th, 2021 at 17:28 UTC+02:00

    Samsung appears to be losing the semiconductor race to TSMC, and it looks like this outcome has to do with Samsung's inability to secure enough semiconductor production equipment for its EUV processes. Or rather, it may have more to do with TSMC beating Samsung to the punch and securing enough EUV production equipment ahead of time.

    By the end of the first quarter of 2021, TSMC was able to increase its contract manufacturing market share by 8 points compared to Q1 2019. It had a share of 56%, outperforming Samsung who has lost 1% market share in the same quarter. But more worrying for Samsung is that TSMC has secured major US customers including Apple and Advanced Micro Devices.

    TSMC acquired EUV equipment from ASML before Samsung

    Samsung has suffered setbacks due to various reasons, such as its factory in Texas getting temporarily shut down due to severe weather conditions, and the fact that US companies seemingly have a preference towards TSMC thanks to favorable Taiwan-US relationships.

    Some US-based fabless companies who are in need of semiconductor foundries have reportedly grown more reluctant towards signing long-term agreements with Samsung because South Korea maintains two-way diplomacy with both China and the US, therefore there's a higher risk of the supply chain being disrupted by political events.

    But Samsung Semiconductor's problems became much more evident when the company failed to acquire enough equipment for EUV semiconductor manufacturing from ASML. As some of you might recall, Lee Jae-yong met with ASML CEO and CTO last year to discuss the supply of equipment necessary for 7nm-and-lower EUV-based processes, but said meeting may have not been very lucrative.

    According to Nikkei, TSMC was able to beat Samsung to the punch and secure 70% of ASML's equipment before Samsung. And because ASML is the only company in the world capable of supplying EUV equipment of this industrial scale, Samsung has lost a lot of ground to TSMC who will undoubtedly use this advantage to widen the technology gap between it and its rival even further.

    Meanwhile, TSMC wants to allocate $100 billion to capital spending by 2023 to combat the semiconductor shortage, and Samsung is trying to achieve similar results by speeding up the construction of its P3 factory.

    General Samsung FoundrySamsung SemiconductorTSMC
    Galaxy AI summarized

    Scroll for more related content
    News For You

    You might also like

    Samsung will be ready to make 2nm mobile chips in 2025

    Samsung will be ready to make 2nm mobile chips in 2025

    Samsung Foundry unveiled its updated semiconductor chip process roadmap today. During the ongoing SFF 2024 expo in the US, the South Korean semiconductor chip giant unveiled its process roadmap for 2nm and 3nm chips and plans for specialized nodes for AI and automotive chips. Samsung Foundry plans to make 2nm chips in 2025 and 1.4nm […]

    • By Asif Iqbal Shaik
    • 1 day ago
    Qualcomm interested in Samsung’s 2nm process for Snapdragon 8 Gen 5

    Qualcomm interested in Samsung’s 2nm process for Snapdragon 8 Gen 5

    Over the past few years, Qualcomm has shifted away from Samsung Foundry for the fabrication of its high-end Snapdragon chips. However, the company is keen on collaborating with Samsung Foundry again for future chips, such as the Snapdragon 8 Gen 5, which will likely be released in 2025. Qualcomm CEO keen on using Samsung Foundry […]

    • By Asif Iqbal Shaik
    • 1 week ago
    Samsung could announce plans for 1nm chips next month

    Samsung could announce plans for 1nm chips next month

    Samsung Foundry could announce its plans for 1nm chips next month during its SAFE Forum event in the USA. According to Taiwanese media, the South Korean firm is also expected to announce mass production plans for 2nm chips during the event. Samsung could start production of 1nm chips as soon as 2026 Samsung Foundry is […]

    • By Asif Iqbal Shaik
    • 2 weeks ago
    New Samsung Semiconductor chief calls for unity among employees

    New Samsung Semiconductor chief calls for unity among employees

    A couple of weeks ago, Samsung appointed a new head of its semiconductor chip business. Jun Young-hyun, who is now heading the South Korean firm's most important business arm, has called for unity among employees to stay on top of the competition. Jun Young-hyun, Samsung Device Solutions' new chief, calls for unity between employees and […]

    • By Asif Iqbal Shaik
    • 2 weeks ago
    AMD rumored to use Samsung Foundry for its 3nm chips

    AMD rumored to use Samsung Foundry for its 3nm chips

    While Samsung Foundry became the first company in the world to start manufacturing 3nm chips in late 2022, no big-name client used its process node. Some rumors even claimed it to be a doomed technology. However, things might be improving for the company, as AMD is rumored to use Samsung's 3nm GAA process node for […]

    • By Asif Iqbal Shaik
    • 2 weeks ago
    Google drops Samsung to go with TSMC for Pixel 10’s Tensor chip

    Google drops Samsung to go with TSMC for Pixel 10’s Tensor chip

    Since Google made its first Tensor processor for Pixel devices, its chips have been manufactured by Samsung Foundry. After four generations, though, the company is ditching Samsung Foundry to go with TSMC to fabricate its next-generation Tensor chip, the Tensor G5, which will be used in the Pixel 10 series. More information about Google's switch […]

    • By Asif Iqbal Shaik
    • 3 weeks ago